Health Savings Account

medical savings with a tax advantage

The Health Savings Account (HSA) allows you to set aside pre-tax dollars to pay for current or future qualified medical expenses, similar to flex-spending accounts. These contributions into your account are tax deductible and the dividends paid to the account are tax-free. Any unused funds remain in the HSA year after year, earning tax-deferred dividends. Additional information is available at www.IRS.gov.

Eligibility

Member must have a High Deductible Health Plan (HDHP).
Member has no other health coverage.
Member is not enrolled in Medicare.
Member cannot be claimed as a dependent on someone else's prior year tax return.

Benefits

Contributions are tax deductible and are made on a pre-tax basis.
Contributions made by the employer are not taxable to the employee.
Dividends are tax-free.
The distributions (contributions and interest) from the account are tax-free as long as they are used for qualified medical expenses for a spouse and or dependents.
Funds are insured up to $250,000 by the NCUA and are accessible just as your savings account.
Funds will remain in your account from year to year until they are used.
HSA accounts are owned by the member and are portable from institution to institution.
Once in retirement, HSA funds may be used to pay for retiree health insurance, Medicare expenses, prescription drugs, long-term care, and a variety of other health services.
Catch-up contributions are allowed for individuals age 55 and older.

Features

Interest bearing account.
Easy access to funds.
Transactions appear on statements.
Payroll direct deposit available with no fees.
NCUA insurance.
No enrollment fees.

How to Enroll

Enrollment in a HDHP with your employer or private insurance carrier.
Call or stop by a Wasatch Peaks Credit Union branch to complete the HSA application.

View our current Health Savings Account rates.